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Understanding the Texas 1-4 Residential Contract

By
Real Estate Agent with Shoreline Real Estate

     There is a great deal of misunderstanding concerning certain paragraphs in the 1-4 Residential Texas Contract. Specifically, paragragh 6(C), the survey paragragh. Box 1 relates to the seller providing an existing survey of the property.  The confusion comes in with the last sentence that states "If the existing survey or affidavit is not acceptable to the Title Company or Buyer's lender(s), Buyer shall obtain a new survey at ___ seller's  ___ buyer's expense no later than 3 days prior to Closing Date."  This comes into play only if the seller can provide a survey which is not accepted. It does not cover the circumstance if the seller cannot produce a current survey. In that case, if this box is marked it is the sellers duty to provide the survey regardless. 

 

      Another section that is reported to be the most misunderstood of all sections is paragraph 7D(2) concerning condition of the property.  Generic statements such as "to be determined after inspections" are not allowed. Only specific problems that were observed can be mentioned here.  However, if box (1) is marked the buyer has the right to request and negotiate repairs in a follow up amendment after inspections are completed.

Comments(1)

Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, e-Pro, TAHS

Hi Lee,  These two points in the contract form are often misunderstood by agents as well as buyers and sellers.  You have explained it very well.

Jan 25, 2013 10:46 PM